Greens MP Tammy Franks said one Adelaide hotel had been limited to four-piece bands and an East End venue in the CBD could only host performers playing the harp or didgeridoo.

"At the Seven Stars Hotel there are restrictions on their stage there, they can have four performers but not five, so the Happy Mondays couldn't play there ... it might be contravening the law," she said.

"The Belgium Beer Garden was only allowed to have [live] music in the form of harps and didgeridoos, other venues have had restrictions on grunge in particular."

Ms Franks said the rules were enforced and prosecuting licensees resulted in a waste of Government resources.

"Many venues have had it enforced," she said.

"The most obvious case is the Dublin Hotel which was only allowed to play Irish folk music. Had a DJ on and they got taken to court and prosecuted for having a DJ in the pub.

We say we want live music in this state, it's big business internationally, it can be big business here in Adelaide.

Tammy Franks, Greens MLC

"[It's] wasting police resources, government time and government money and for what?

"They went and got their licence changed eventually, the lawyers made a pretty fee out of it, but live music was not the winner that day and neither were the licensees or the punters."

Ms Franks said through the amendment bill, the commissioner has the power to remove some of the rules that exist for hundreds of venues across the state.

"The commissioner has the power now to remove some of these archaic provisions that are in hundreds or licences across the state and by Christmas time you'll be able to have a beer and watch a band and it won't matter if it's grunge, rock, folk," she said.

"Liquor licensing will just care that you're being served alcohol in a safe premise."

She said she hoped the amendment bill would help promote live music in South Australia.

"We say we want live music in this state, it's big business internationally, it can be big business here in Adelaide," she said.

"So by cutting out the entertainment constraints around liquor licensing we hope to free up the music industry in this state."